Asbury Automotive Group, Inc. (ABG): A Bull Case Theory

We came across a bullish thesis on Asbury Automotive Group, Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on ABG. Asbury Automotive Group, Inc.’s share was trading at $231.77 as of July 21^st. ABG’s trailing and forward P/E were 11.04 and 8.52, respectively according to Yahoo Finance.

Asbury Automotive Group, Inc. is a leading consolidator in the highly fragmented U.S. automotive retail market, distinguished by its resilient model anchored in high-margin parts and service operations, disciplined acquisitions, and forward-looking digital innovation. The company operates a geographically diverse portfolio of dealerships offering new and used vehicles, financing, insurance, and aftersales services, with parts and service providing annuity-like revenue streams that stabilize earnings through economic cycles.

As vehicles become increasingly complex, Asbury’s franchised dealer expertise and specialized infrastructure create a widening competitive moat, while its focus on import and luxury brands in attractive metropolitan areas drives recurring high-margin service work and enhances customer loyalty. Growth is driven by a dual-pronged strategy: acquisitive expansion and organic operational improvement.

The transformational acquisition of Larry H. Miller Dealerships, one of the largest in industry history, demonstrated Asbury’s ability to scale strategically and extract significant operational synergies, cementing its competitive position. Complementing this M&A strength is Clicklane, Asbury’s proprietary end-to-end digital retailing platform, which integrates online and in-store experiences to meet evolving consumer preferences, improve operational efficiency, and strengthen retention.

This combination of stable service-driven profitability, a proven consolidation engine, and digital leadership is backed by disciplined capital allocation, including opportunistic share repurchases and prudent balance sheet management to preserve financial flexibility. Asbury’s model positions it not just as a participant but as a shaper of the automotive retail industry, offering investors a platform designed for durable, compounding value creation and sustained long-term growth.

Previously, we covered a bullish thesis on Lithia Motors, Inc. (LAD) by Chit Chat Stocks in May 2025, which highlighted its acquisition-driven model, high-margin service operations, and long runway for consolidation in the fragmented U.S. auto dealership sector. The company’s stock price has appreciated approximately 4.79% since our coverage as its roll-up strategy plays out. Stock Analysis Compilation shares a similar view on Asbury Automotive Group, Inc. (ABG) but emphasizes its digital innovation and premium brand focus.

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Disclosure: None.